Soldato
When advertising finance APR % they need to offer that to more than half the people. If your not in their target demographic however you may get offered silly rates.
I have 3.1% with ZOPA, was the lowest they gave at the time, when I was thinking about another car change when I asked for some extra, 8.9%. I've got a suspicion they don't like too much unsecured lending.
You can take on PCP and a bank loan (or certainly a ZOPA loan) without apparently having two loans, until its past relevant.
"order" new car. PCP will check in order to allow finance, this will however only flag a search.
A few days before you get the car you apply for a ZOPA loan, this will be approved in theory but dont draw down.
Collect car after signing PCP deal.
Drawdown finance from ZOPA
Call PCP company, ask to withdraw from the finance agreement, they will send details of what to pay, use loan to pay off.
I have noticed recently though a lot of manufacturers are starting to allow the discount as a cash discount or a PCP discount, so I suspect the widening knowledge of the above means they will just try to compete on price and stop messing about only offering a contribution if you take their PCP.
They would prefer to sell you the car outright, its your risk then if something hammers the resale value (such as dieselgate), if its on PCP they maintain the risk since if its hammered in resale value you will just hand it back.
If your 95% certain you want the car for the PCP period (pretty much anything is negotiable) only its not a bad way of doing it, there is unlikely to be much cost difference if you bargain well on the APR, and its not got a super strong residual (you pay interest on the outstanding balance, so if its got a strong residual you are paying on that final balloon for the whole period).
If you far less certain you will keep the car for roughly that period, and may swap it in well before, or if its a real keeper for you, then traditional finance is likely to be better.
I have 3.1% with ZOPA, was the lowest they gave at the time, when I was thinking about another car change when I asked for some extra, 8.9%. I've got a suspicion they don't like too much unsecured lending.
You can take on PCP and a bank loan (or certainly a ZOPA loan) without apparently having two loans, until its past relevant.
"order" new car. PCP will check in order to allow finance, this will however only flag a search.
A few days before you get the car you apply for a ZOPA loan, this will be approved in theory but dont draw down.
Collect car after signing PCP deal.
Drawdown finance from ZOPA
Call PCP company, ask to withdraw from the finance agreement, they will send details of what to pay, use loan to pay off.
I have noticed recently though a lot of manufacturers are starting to allow the discount as a cash discount or a PCP discount, so I suspect the widening knowledge of the above means they will just try to compete on price and stop messing about only offering a contribution if you take their PCP.
They would prefer to sell you the car outright, its your risk then if something hammers the resale value (such as dieselgate), if its on PCP they maintain the risk since if its hammered in resale value you will just hand it back.
If your 95% certain you want the car for the PCP period (pretty much anything is negotiable) only its not a bad way of doing it, there is unlikely to be much cost difference if you bargain well on the APR, and its not got a super strong residual (you pay interest on the outstanding balance, so if its got a strong residual you are paying on that final balloon for the whole period).
If you far less certain you will keep the car for roughly that period, and may swap it in well before, or if its a real keeper for you, then traditional finance is likely to be better.